Itanium is an alternative architecture from Intel Corp. (INTC) specialized for mission-critical systems. While pricey and outdated in some ways, Itanium remained for many customers remained the best option, hence constituting a small, but lucrative annual revenue stream for Intel.

Intel's latest Itanium, Tukwila launched in Feb. 2010 after years of delays. It was originally announced in Feb. 2003 under the code-name "Tanglewood". [Image Source: Intel]

With recent statements from Intel raising the possibility of a merger of the Itanium and x86 architectures, some companies -- including Microsoft Corp. (MSFT) and Red Hat, Inc. (RHT) -- perceived that as a signal that Itanium was going the way of the dinosaur. Both companies dropped their support, putting substantial pressure on the Itanium ecosystem.

Oracle, not looking to be left in the dust, also announced its decision to jump ship. Unfortunately that move may have breached its contractual obligations to HP -- or so HP says.

The pair was unable to settle their differences in mediation, so the court trial will be kicking off today. HP seeks $4B USD in damages. Oracle's lawyers claim that HP "cannot support" its allegations of breach-of-contract. Further, they allege that Intel and HP had a secret understanding that Itanium was headed for end-of-life. Oracle has counter-sued over that alleged understanding, accusing HP of false advertising.

The spat is expected to draw in Intel CEO Paul Otellini to set the record straight about Itanium's fate, although Intel is not a plaintiff or defendant in the case.

The court conflict is set in scenic Santa Clara, Calif. [Image Source: Treehugger]

The contract dispute between the two California-based companies (HP and Oracle) will take place in state court -- the Superior Court of the State of California, County of Santa Clara, to be specific. Santa Clara is located at the heart of Silicon Valley in northern California (in the Bay Area) and is home to Intel's headquarters.

II. Judge Likens Case to "Divorce" Proceeding

The first phase of the trial, presided over by Judge James Kleinberg, will constitute the Judge seeking to verify whether a contract still exists between the two companies.

Judge Kleinberg acknowledge the bitter nature of the spat commenting, "This case appears to be the end of a marriage."

The case is an important one for Oracle, who in the wake of the Android defeats will likely look to save face with this major dispute. Another loss could be perceived as a sign of weakness from investors -- something Oracle desperately wants to avoid.

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